Monday, 17 June 2024, Bengaluru, India
OYO is a hospitality startup that is planning to raise $20 million from its family offices of top corporates and market experts. This initiative was taken after OYO prepared to refile IPO papers for a refinancing loan while reaching the advanced stage. The company was reportedly looking to raise up to $450 million through the sale of dollar bonds.
The Economic Times mentioned that the startup might hold its general meeting tomorrow to get approval for fundraising. This will have the participation of family offices including offices of corporate strategy advisor Anand Jain, and Mankind Pharma promoter brothers Rajeev Juneja and Ramesh. This round will make the valuation of OYO reach around 2.5 billion USD. The company is still having meetings with Malaysian Sovereign Wealth Fund Khazanah Nasional on certain points before finishing the deal. This incipiency might have a fundraising of Rs 250 crore to Rs 300 crore from Khazanah Nasional and other investors. Incred Wealth fund is also helping OYO to pitch fundraise through a special purpose vehicle.
The initial fundraising amount offered by EGM is predicted to be around Rs 500 crore while others are expected to offer Rs 15 to 30 crore. The startup reported its net profitability at Rs 100 crore for this financial year. The CEO of OYO, Ritesh Agarwal mentioned in a post that this was their 8th consecutive quarter with positive EBITDA and a cash valance of more than Rs 1000 crore. OYO claims to offer small businesses and entrepreneurs with best class hospitality and operations.
The firm was aiming to raise $350-$450 million through bond insurance with an estimated interest rate of around 10 percent. Oyo was previously in the news for submitting its documents to withdraw its draft red herring Prospectus with the SEBI. This hospitality startup mentioned that the decision for refinancing is at the final stage and the IPO launching was delayed due to market conditions.
Conclusion
A travel tech and hospitality startup, OYO announced its plan to raise $120 million from its family offices. The company was previously applying to refile IPO papers for a refinancing loan while nearing finalization rounds. The firm was said to be looking to raise up to $450 million through its sale of dollar bonds in a round led by JP Morgan. Before the post-refinancing round, the company opened its equity round to get investors’ confidence in its business model before going public to gain financial strength. The startup might hold its general meeting tomorrow to get approval for fundraising with the participation of family offices including offices of corporate strategy advisor Anand Jain, and Mankind Pharma promoter brothers Rajeev Juneja and Ramesh. This round will make the valuation of OYO reach around 2.5 billion USD. This marks their 8th consecutive quarter with positive EBITDA and a cash valance of more than Rs 1000 crore. Oyo was previously in the news for submitting its documents to withdraw its draft red herring Prospectus with the SEBI. This hospitality startup mentioned that the decision for refinancing is at the final stage
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